Chapter 8, Problem 1CRQ

Identify the various functions of performance appraisals. How are appraisals used in most work organizations?

Summary Introduction

To identify:

The concept of various functions of performance appraisal and the way appraisals are important for an organization.

Introduction:

Performance appraisal is the systematic analysis of the performance of workers during a given period to know the skills of an individual. The key purpose of performance appraisal is to spot the strengths and weaknesses of workers so that the suitable person can be put on to the job.

Answer to Problem 1CRQ

Performance appraisal is a process of identifying and managing and measuring the performance in an organization based on the employee's performance and other aspects.

Explanation of Solution

Performance appraisal is very important for an organization. The performance appraisal has three basic functions:

(1) This system provides the employees the necessary feedback on their performance.

(2) The system provides a basis for modification or change in the behavior of simpler operating habits.

(3) The system provides information to managers so that they can decide future job assignments and compensation. The performance appraisal thought is a key to effective management.

The organizations spend a lot of money in recruitment and training process. The appraisals help an organization in many ways. These are explained below:

(1). The performance appraisal system helps an organization to select those employees which can be promoted.

(2). This system also helps an organization in making decision for lay-off.

(3). The deficiencies of training process can be found and hence the organization can take necessary steps to eliminate the problems.